Colliers International will be releasing our Q4 Regional Reports for the Greater Philadelphia region covering the Industrial, Retail and Office sectors to the general public Tuesday, January 21st. Please enjoy the attached previews. Here’s what we saw as we finished out 2019:
Regional Industrial Market
- Regional vacancy increased to 6.5% during the last half of 2019.
- Annual absorption was below the previous three years, but still topped 10.8 million square feet.
- Asking rents increased by 1.4% in the last two quarters boosted by the delivery of new construction.
- Over 13.0 million square feet of new construction was completed in the last two quarters, pushing the annual total to 16.7 million square feet.
- Both user and investor sales volume decreased during the second half. Value-add properties with excess land were in high demand.Recent Transactions and Market by Market Analysis in the full report.
Regional Retail Market
- The regional vacancy rate increased from 8.1% to 8.8% during the last half of 2019, but remained below 2018’s 9.1% level.
- Another round of Kmart store closings added over 800,000 square feet of vacancy to the market.
- Multiple large-scale redevelopments are underway with more in the pipeline as center owners manage anchor vacancies.
- The investment market remained active despite market volatility.
Recent Transactions and Market by Market Analysis in the full report.
Regional Office Market
- The regional office market vacancy rate remained at 12.3% during the last half of 2019.
- Annual absorption topped 856,000 square feet. This was below 2018’s total, which was inflated by the completion of the Comcast Technology Center.
- The weighted average asking rent dipped slightly from the end of the 2nd quarter to $27.06 per square foot, full service. This was mainly due to the higher ratio of Class B space on the market.
- Investment sales volume increased after a slow start the year, boosted by multiple suburban portfolio trades.
Recent Transactions and Market by Market Analysis in the full report.
About Colliers International
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 15,400 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
